Major obstacles facing business enterprises in an emerging economy: the case of Ghana using the World Bank Enterprise Survey

2021 ◽  
Vol 28 (3) ◽  
pp. 475-487
Author(s):  
Ibrahim Mohammed ◽  
Alhassan Bunyaminu
Keyword(s):  
World Bank ◽  
Emerging Economy ◽  
Probit Regression ◽  
Cross Sectional ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Business Enterprises ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

PurposeThis paper aims at identifying the major obstacles to business enterprise in an emerging economy and how these obstacles are associated with different characteristics of the enterprises.Design/methodology/approachThe study relied on the World Bank Enterprise Survey data on Ghana and applied binary and ordinal probit regression techniques to estimate the associations between the characteristics of the enterprises and the identified obstacles. Significance testing of the associations is also conducted.FindingsThe five main obstacles perceived by most of the enterprises in the study are access to finance, electricity, access to land, customs and trade regulations and tax rates. These obstacles are associated in different ways to growth rate (high vs low growth), scale (small and medium vs large), age, size of employees, the experience of the top manager and ownership (wholly domestic vs foreign ownership).Research limitations/implicationsAs a cross-sectional study focusing on Ghana, the findings are informative about the major obstacles facing business enterprises in an emerging economy; however, the ecological validity of these findings may be limited to factors specific to Ghana.Originality/valueGiven the representativeness of the Enterprise Survey, policymakers can rely on these findings to formulate useful policies to promote the operations of business enterprises.

The role of informal competition in driving export propensity of emerging economy firms

2020 ◽  
Vol 40 (1/2) ◽  
pp. 184-203 ◽  
Author(s):  
Rouhin Deb ◽  
Harsh Vardhan Samalia ◽  
Santosh Kumar Prusty
Keyword(s):  
World Bank ◽  
Emerging Economy ◽  
Data Set ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
World Bank Enterprise Survey ◽  
Primary Relationship ◽  
Enterprise Survey

Purpose Competitive pressure from informal firms has always been a threat to the formal enterprises. However, the strategic choices a firm makes to deal with such competitive pressures still remain under-explored. The purpose of this paper is to examine the influence of informal competitive pressures in driving export propensity of formal firms. Design/methodology/approach The paper is based on a standard error logistic model, and the model takes into account the contingent relationships along with the primary relationship. The authors draw the sample of 9,812 manufacturing firms spanning across the Indian sub-continent from the World Bank enterprise survey conducted in the year 2014. Findings The empirical results indicated that the level of competition from informal firms is positively associated with the propensity to export. The primary relationship is also affected by various contingent factors such as regulatory obstacles, bribery and new product development. Research limitations/implications Although the World Bank enterprise survey data provide a broad coverage, the study warranted few proxy measures in order to operationalize formal competition as it was not captured directly in the concerned data set. Practical implications The analysis demonstrates that informal competition has direct effect on the firm’s propensity to export. The findings indicate that export is an attractive action alternative for firms facing informal completion in an emerging economy. The results further indicate that this effect strengthens as institutional factors such as regulatory obstacles and bribery increase. Social implications The paper is an attempt to alter the prevailing negative view on informality. The findings indicate that informal competition spurs competitiveness in the formal sector indicating its positive role in the economic growth of the nation. Originality/value The paper takes cue from attention-based view of the firm and the institutional escapism logic to affirm the role of informal competition and various contingent institutional and strategic factors in driving export propensity.

MSMEs Productivity in Nigeria

2017 ◽  
Vol 7 (1) ◽  
pp. 114
Author(s):  
Oluseye Samuel Ajuwon ◽  
Sylvanus Ikhide ◽  
Joseph Oscar Akotey
Keyword(s):  
Growth Rate ◽  
Survey Data ◽  
World Bank ◽  
Productivity Growth ◽  
Small Businesses ◽  
The World Bank ◽  
The World ◽  
Product Customization ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

This study uses the World bank enterprise survey data for Nigeria to examines Micro, Small and Medium Enterprises (MSMEs) productivity rate in the Nigerian economy. The study explores factors that constrain MSMES output growth in Nigeria. Some of the factors identified include huge infrastructural gap, inadequate institutional support and low access to credit. The resultant effect is a low investment commitment amongst MSMEs thus hampering the productivity of MSMEs in the Nigerian economy. The MSMEs productivity growth rate was measured using annual sales of firms from the World bank enterprise survey data for Nigeria. This research employs the non-parametric variance estimation using the locally-weighted scatterplot smoothing (LOWESS) method on three sets of two-points data (2006 and 2003, 2008 and 2002, and finally 2012 and 2009) of annual fiscal sales for each category of firms comprising micro, small, medium and large firms. The result shows that the small businesses have a negative productivity growth rate in Nigeria. This in line with IFC (2013) which found that small businesses have the least productivity growth rate amongst firms of all sizes. However, this study departs from IFC findings which states that small businesses’ low productivity growth rate is tenable across all the sectors of the economy. The study found that small businesses actually recorded high productivity growth rate in some subsectors of the economy that specializes in product customization such as garment and furniture. Therefore, this study validates the flexible specialization theory that emphases the economic importance of MSMEs in the post-industrial era where product customization is the new order of production. The policy implication of this study is that any targeted intervention in the MSMEs sub-sector of the economy designed to increase productivity, should be channeled into the subsector with the most employee specialization as well as product customization.Keyword(s): MSMEs, small business, Output, Productivity, JEL Classifications: P42 M13 O55

The IMF, its mandate and influence in prevention of financial sector abuse

2016 ◽  
Vol 23 (4) ◽  
pp. 987-1011
Author(s):  
Norman Mugarura
Keyword(s):  
World Bank ◽  
Secondary Data ◽  
Financial Sector ◽  
Data Sources ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Secondary Data Sources ◽  
Work Done ◽  
The Imf

Purpose The purpose of this paper is to articulate the mandate of the International Monetary Fund (IMF) not least in promoting a sound legal regulatory environment for markets to operate globally and its inherent challenges. While acknowledging the plausible work done by the IMF in supporting countries to achieve their macro-economic stability, the paper articulates some of its shortcomings as a global institution. It is evident that the post-war climate in which the World Bank and IMF were created has drastically changed – which presupposes that these institutions now need to reposition themselves to reflect on contemporary global challenges accordingly. The author has argued in the past that a robust regulatory system should be devised taking into account the dynamic challenges in the market environment but also to prevent them from happening again. Design/methodology/approach The paper has utilized empirical evidence to evaluate the mandate of the IMF in addressing its dynamic challenges such as the global financial and debt crises in Europe and the USA and prevention of financial sector abuse globally. The IMF is one of the Bretton Woods Institutions charged with the oversight responsibility to enforce policies and enable countries to manage their macro-economic challenges efficiently. Findings The findings demonstrate that the IMF is as relevant and important as it was when it was created in 1945. However, there is a need for intrinsic and structural changes within this institution to continue discharging its mandate in a changed global regulatory landscape. The IMF is still crucial in fostering a fundamental stabilization function to fragile global economies in areas of financial and technical assistance, and developing requisite legal and supervisory infrastructure within fledging member countries. Research limitations/implications The paper was written by analysis of both theoretical and empirical data largely based on secondary data sources. It would have been better to first present the findings in an international conference to solicit wide views and internalize them accordingly. Practical implications While acknowledging the plausible work done by the IMF and its counterpart the World Bank in facilitating global financial markets regulation and prevention of financial sector abuse, as oversight institutions, they need to constantly review their mandate to respond robustly to their dynamic challenges such as the global and debt crises and financial sector abuse. Oversight institutions need to constantly review and adapt their mandate accordingly, if they are to discharge their varied responsibilities efficiently. They cannot stand still in the face of challenges because they will be superseded and kept at a back foot. Social implications Markets and states are embedded in each other, and the way they are regulated is of a significant importance to varied stakeholders and people. Originality/value This paper is one of its kind, is unique in its character and evaluates embedded issues using empirical evidence in a way not done in its context before. Secondary data sources have been evaluated to achieve a thoughtful analysis of the objectives of the paper.

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